Answer:
Give an example of a situation in which a surplus of a product led to decreased prices. similarity, give a example of a situation in which a shortage led to increased prices. what eventually happened in each case? why?
In the course of having surplus of a product which decreases the price, this happens as a result of high competition as there many people selling the same products which in turns leads to crash in price in order to make sales and little profit.
while product shortage or scarcity happens as a result of decrease in resources or decrease in supply, hence; results into scarcity of products which eventually aids increment of price
Explanation:
Answer:
True
Explanation:
Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.
Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.
Answer:
10.92%
Explanation:
The formula and the computation of the estimated cost of equity capital is shown below:
Stock price = Next year dividend ÷ (cost of equity - expected dividend growth rate)
We assume the cost of equity be X
$34 = $3.10 ÷ (cost of equity - 1.8%)
$34 X - $34 × 1.8X = $3.10
After solving this,
The cost of equity would be 10.92%
Answer:
A. Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends
Answer:
Participative leadership style
Explanation:
Path goal theory is a leadership theory that specifies the leadership style that should be used in an organization to achieve a goal based on the employees and the working environment. The following steps are to be taken based on the path goal theory:
- Determine the employee and environmental uniqueness based on their needs.
- Selecting a leadership style and adjusting this style based on the employees need.
- Focusing on how to motivate the employee to achieve the goal
Participative leadership style is a style in which leaders involves their subordinates by asking them for suggestions before making a decision. This style is best used when subordinates are highly involved and trained.
